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Transcript of Ball State University Education Redefined Understanding Your Ball State University Retirement Plans...
Ball State UniversityEducation Redefined
Understanding Your Ball State University
Retirement Plans
New Faculty Orientation
2014
Ball State UniversityEducation Redefined
Ball State University Retirement Plans
AGENDA Pension Plan Options
Alternate Pension Plan (“APP”) Teacher’s Retirement Fund (“TRF”)
Alternate Pension Plan Description Contributions Investment Options Enrollment Process
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Ball State UniversityEducation Redefined
Ball State University Retirement Plans
AGENDA (cont’d) Teachers’ Retirement Fund
Description Contributions Investment Options Enrollment Process
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Ball State UniversityEducation Redefined
Ball State University Retirement Plans
AGENDA (cont’d) Voluntary Retirement Savings Plan
Descriptions Contributions Investment Options Enrollment Process
Important Reminders
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Ball State UniversityEducation Redefined
Ball State University Retirement Plans
PENSION PLAN OPTIONS
(1) Alternate Pension Plan (APP)
(2) Teachers’ Retirement Fund (TRF)
These plans are fully paid by the University. The enrollment deadline is 60 days after your date of hire.
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Ball State UniversityEducation Redefined
Ball State University Retirement Plans
APP DESCRIPTION
Defined contribution plan 100% immediate vesting University funded University contributions plus/minus earnings are available
upon termination of employment
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Ball State UniversityEducation Redefined
Ball State University Retirement Plans
APP CONTRIBUTIONS
5% of gross wages for first 3 years
10.5% of gross wages thereafter
Contributions are made on a monthly basis
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Ball State UniversityEducation Redefined
Ball State University Retirement Plans
APP INVESTMENT OPTIONS Vendors
ING Fidelity Investments Lincoln Financial Corp TIAA-CREF
Approved investment fund options by company Target date asset funds available Flexibility to change investment funds
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Ball State UniversityEducation Redefined
Ball State University Retirement Plans
APP ENROLLMENT PROCESS
Quick guide to information about APP: Letter to new employee APP at a Glance TRF and APP Comparison APP Enrollment Form
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Ball State UniversityEducation Redefined
Ball State University Retirement Plans
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APP ENROLLMENT PROCESS Designate your chosen investment company (multiple
companies can be selected) Separate application required to establish BSU account with
investment company (University contributions cannot be made if account is not established); available from vendors/PEB website
Designate investment funds Complete Ball State University Alternate Pension Plan &
Designation of Investment Company Election Form and turn in to PEB; available on PEB website
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Ball State University Retirement Plans
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TEACHERS’ RETIREMENT FUND DESCRIPTION
Defined benefit plan Administered by Indiana Public Retirement System (INPRS) Annuity and pension benefit University funded Contribution rate determined by State
Ball State UniversityEducation Redefined
Ball State University Retirement Plans
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TEACHERS’ RETIREMENT FUND DESCRIPTION Two part plan design
Annuity savings account (ASA)
Pension benefit
Ball State UniversityEducation Redefined
Ball State University Retirement Plans
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TEACHERS’ RETIREMENT FUND CONTRIBUTIONS Annuity Savings Account
3% contribution made by University Optional voluntary contributions by member
Pre-tax election irrevocable for as long as member is BSU employee
2 year window after 5 years of service credit Special rules for post-tax election
100% immediate vesting Contributions plus/minus investment earnings can be withdrawn at
termination
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Ball State University Retirement Plans
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TEACHERS’ RETIREMENT FUND CONTRIBUTIONS Pension Benefit
University contributes State mandated contribution percentage Benefit = average of highest 5 years of annual compensation x total years of service
x 1.1% Vesting
10 years of TRF credited service entitles member to monthly benefit at 65 Credited service < 10 years yields no pension benefit, only annuity Rule of 85
TRF member’s age is 55 – 59 + years of credited service = 85 or more TRF member’s age is 60 – 64 + 15 years of credited service
Early retirement Eligible for reduced pension at age 50 - 59 + 15 years of credited service
Ball State UniversityEducation Redefined
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TRF INVESTMENT OPTIONS
Investment election available for Annuity Savings Account and optional voluntary contributions only
Refer to Indiana Public Retirement System website (www.inprs.in.gov)
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TRF ENROLLMENT PROCESS
Retirement Plan Enrollment Kit TRF at a Glance TRF and APP Comparison TRF application is available on the PEB website Complete form and return it to PEB as soon as possible
Ball State UniversityEducation Redefined
Ball State University Retirement Plans
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VOLUNTARY RETIREMENT SAVINGS PLANS DESCRIPTIONS
403(b) Tax Deferred Annuity (TDA) with ROTH after-tax option
457(b) Deferred Compensation Plan
TRF Pre-tax after 5 years of credited service
TRF After-tax
Ball State UniversityEducation Redefined
Ball State University Retirement Plans
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VOLUNTARY SAVINGS PLANS CONTRIBUTIONS
Employee only contribution
Designate a percentage of gross wages
Contribution subject to IRS maximum ($17,500 for 2014)
Catch-up contribution available for participants age 50 and over ($5,500 for 2014)
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Ball State University Retirement Plans
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VOLUNTARY RETIREMENT SAVINGS PLANS INVESTMENT OPTIONS
Six investment companies for 403(b) TDA AUL/One America Equitable Fidelity ING Lincoln National Corp TIAA-CREF
Two investment companies for 457(b) Fidelity TIAA-CREF
No restrictions on fund selection
Ball State UniversityEducation Redefined
Ball State University Retirement Plans
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VOLUNTARY RETIRMENT PLANS ENROLLMENT PROCESS
Separate election required 403(b) and 457(b)
Designate your chosen investment company Separate application required to establish BSU account with investment
company (contributions cannot be made if account is not established) Designate investment funds Complete 403(b) and 457(b) Plan Salary Reduction Agreement and turn in to
PEB TRF – contact Indiana Public Retirement System
No deadline to join except TRF pre-tax
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Ball State University Retirement Plans
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IMPORTANT REMINDERS
Deadline for APP or TRF Election is 60 days after date of hire
If no election form is submitted, pension election will default to TRF and cannot be changed
For APP, 403(b) and 457(b), establish account with investment company, then complete appropriate form
Ball State UniversityEducation Redefined
Ball State University Retirement Plans
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PEBAdministration Building
Room G29
Susan Kobrin – Retirement Plan [email protected]/285-8404
Stacey French – Retirement Plan Specialist [email protected]/285-8470